What is the difference between earnings and allowances

Hi
Currently I am working as a payroll functional for Indian Legislation.What is the main difference between earnings and allowances? Is there any rule to classify any element as earning or allowance?

Earnings
Represents payments made to an employee other than perquisites and allowances.
Allowance
Represents the allowances that are paid to an employee, for example, conveyance allowance and house rent allowance.
The element creation wizards setup a lot of this stuff for you. Check out the following Oracle Support article for more information on Indian payroll setup:     
Oracle Human Resources (HRMS) for India Supplement (Doc ID 297146.1)

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